The company said that the acquired assets complement the its acquisition of Thatcher Tubes in January 2003, and further expands its manufacturing capacity for plastic tubes for personal care products by approximately 30 per cent.
The purchase price for the assets was $5.5 million plus approximately $2.2 million for net working capital consisting primarily of inventory. This pales in comparision to the purchase price fort the Thatcher Tubes acquisition, for which Silgan paid $32 million, which included the purchase of equipment that was being installed at the time of the transaction.
The Company also stated that this acquisition would have no effect on its expectation to reduce its debt by at least $75 million in 2004. Silgan has been working towards reducing its debts through a series of cost saving measures, combined with its aims to acquire profitable businesses.
The company recently announced second quarter results to July which were said to raise full year expectations. Net sales for the quarter were $551.3 million, an increase of $6.1 million, or 1.1 per cent, as compared to $545.2 million for the same period in 2003. Further to this income from operations for the quarter was $45.2 million, an increase of $3.1 million.
Silgan Holdings is a leading North American manufacturer of consumer goods packaging products with annual sales of approximately $2.3 billion in 2003. Silgan operates 61 manufacturing facilities in the US and Canada. In North America, the Company is the largest supplier of metal containers for food products and a leading supplier of plastic containers for personal care products and of metal and plastic closures for food and beverage products.